What does business owe the world? US Sustainability Report Summary 2017 About this report

The EY US Sustainability Report 2017 covers FY17, from 1 July 2016 to 30 June 2017. Several initiatives or stories that were launched in FY18 are included in this report as they may be relevant and provide more up-to-date information to our stakeholders. Ernst & Young LLP (together with its affiliate, Ernst & Young U.S. LLP) is a limited liability partnership organized in Delaware and is a member firm of Ernst & Young Global Limited, a UK company limited by guarantee (EYG). In this report, we refer to ourselves as “EY US” and “we.” EY refers collectively to the global organization of the member firms of EYG.

Learn more This document is a high‑level summary of our full sustainability report, available at ey.com.

PURPOSE 2

ABOUT EY 3

SUSTAINABILITY 5

PRINCIPLES 9

PEOPLE 11

1 SERVICE 17

COMMUNITIES 19

ENVIRONMENT 23

LEARN MORE 25

1 US Sustainability Report Summary 2017 PURPOSE

What happens when everyone in an organization is committed to a shared purpose?

A word from Steve Howe, EY US Chairman and Americas Managing Partner Take a look around the world today, and you will see so impact to find one breakthrough idea, whether it is to redefine much that is inspiring — and that may make us feel uneasy. an important business process, to upend outmoded ways of New ways of working and connecting, enabled by advances in thinking or to instill a new passion for a community issue. technology and globalization, have accelerated to the point In the pages that follow, you will see the advances we have where what appears on the horizon is now right in our laps. It made, both in our operations and how we help build a better is a thrilling yet challenging time to be not just in business but working world. Many of these challenges are not so easily also a citizen in the world. overcome, especially for a business that has grown — and is With that in mind, growing — as rapidly as we are. We are rising to the challenge. Ernst & Young LLP In many areas we are already leaders. We lead in revenue (EY US) is constantly growth across our industry, we are recognized as leaders in evolving our Vision 2020 diversity and inclusiveness, and we are an employer of choice framework for growth on campus and among experienced professionals. and success to continue But we know we can be even better. to do what we do best: promoting trust and In the short term, EY US is focused on further improving our transparency in capital diversity and inclusiveness metrics, achieving our greenhouse markets, and helping gas emission targets and more. And we are learning more companies prosper and drive job growth in a disruptive era. about where we need to improve and where we can help Innovation is at the core of these endeavors within our own others as well, whether it is in supporting entrepreneurs and operations — for example, in robotic process automation and youth education or creating more equitable opportunities in machine learning, which can shift our people toward more the workplace. complex and critically challenging tasks. Disruptive forces will not fade away — they will continue to But all of what we do, no matter how we do it, is founded on evolve. And EY will evolve right alongside them, never losing our values and our overarching purpose. If you have ever read sight of the core values of equity and opportunity that anything about EY before, then you know what I am about to have propelled us in the past. say. Our message is as important now as it has ever been: our purpose is to build a better working world. And in this rapidly changing world, we have strength in numbers: more than 45,000 people in the US. We challenge them all to make an

US Sustainability Report Summary 2017 2 ABOUT EY

FY 2017 US revenue, growth Market position and personnel and accolades

Through our member firms in the US and around the world, the EY organization serves our clients through a broad focus, centered on the entire account instead of just segmented #1 #1 areas. We group our client- Rank among Big Four in growth Leader in Fortune 500 and 1000, serving people into four global (Americas) Russell 3000 audits, and IPOs service lines — Assurance, Tax, Same as in 2015 Transaction Advisory Services and Advisory — each of which #4 has its own subservice lines. $13b EY US is proud to have been For more information about Total revenue in the US ranked as the fourth World’s our service and subservice $11.2b in 2015 Most Attractive Employer lines, please visit our website. in the Universum 2017 Employer Rankings, and for Core Business Services is our the 10th straight year, college internal practice support group. 6.6% students ranked us No. 1 We issue a sustainability report in accounting Annual revenue growth in the US every two years, and where 12.5% in 2015 applicable, we provide 2015 benchmarks to our figures 20 years at right. 46,471 For the 20th consecutive year, 3 EY US appears on FORTUNE People in the US magazine’s 100 Best Companies Up from 40,148 in 2015 to Work For® list

Vision 2020+

As part of defining our purpose of building a better working world and making it real, EY rolled out our Vision 2020 strategy a few years ago to get our people motivated behind an ambitious goal to be the top global professional services organization by 2020. And those plans have evolved into Vision 2020+, the next step in becoming a future-facing organization. It builds on the success we’ve achieved so far and accounts for the dramatic, fast-paced changes that the world is undergoing. Vision 2020+ addresses the changes we’re seeing through a series of service line and sector big bets as well as execution priorities for the entire organization.

3 US Sustainability Report Summary 2017 Diversity Equality Ethics and inclusiveness and training

#1 45% 100% Position on the DiversityInc Percentage of new hires Percentage of client-serving Top 50 Companies for Diversity who are women professionals who signed the list, marking 15 years on the list 44% in 2015 EY Global Code of Conduct 80% 35% 2.8m Percentage of employees Percentage of those promoted Total continuing professional who indicated that their managers to partner, principal, executive education (CPE) hours for encourage and respect varying director or director rank EY US people viewpoints, perspectives who are women 2.5 million in 2015 and styles Up from 32% in 2015 82% in 2015 112,000 39% Hours of ethics-related training in the classroom, New hires from campuses online and through web-based who are minorities learning modules Same as in 2015 Over 100,000 in 2015

US Sustainability Report Summary 2017 4 SUSTAINABILITY

EY US believes that doing well on the bottom line and doing well for society as a whole are not conflicting goals — that business is part of the solution and not just part of the problem. 5

5 US Sustainability Report Summary 2017 The future of sustainability in a changing world In 2017, Gallup found that 36% of Americans had very little confidence in big business — not much changed from the days of the financial crisis, and nearly the highest rate recorded in over 40 years of polling. And a 2016 Harvard University survey that exclusively examined a younger generation, ages 18 to 29, found that more than half of participants did not support capitalism. In a time of great change, some Americans see the country shifting — or stuck — 81% in an environment that doesn’t favor them. Globalization continues unabated, cities are growing in importance, and rural areas are at greater risk of being left behind. Percentage of people who feel A new innovation arrives, and just as quickly, a company vanishes. Thousands of we live our values, according to jobs can disappear in an instant while others, requiring new skills, can surface just the latest Global People Survey as quickly. results in the US For businesses to survive and thrive over the long term, today’s environment requires greater agility, innovation and resilience — and the benefits extend beyond the balance sheet. EY US believes that doing well on the bottom line and doing well for society as a whole are not conflicting goals — that business is part of the solution and not just part of the problem. That purpose galvanizes us every day, aligned not just to how we position ourselves to succeed in the market but also to engage our people and show their work is meaningful.

Agents for positive change

Efforts that drive sustainable development and inclusive capitalism — to spread economic opportunity while considering social and environmental impacts — are advancing nationally and globally. As an advisor to some of these initiatives, as well as to the world’s biggest companies, EY US is in a position to act as an example and a resource for furthering mutually beneficial aspirations:

To make better decisions, stakeholders In the emerging field ofsocial‑impact We accelerate positive change by investing such as investors, lenders and insurance investing, talent and financing are in key thought leadership and engaging underwriters need more impactful matched with projects with measurable with a large range of stakeholders to disclosures centered around outcomes that can further improve society, collaborate on key workplace issues. For environmental, social and governance such as by supporting entrepreneurs in example, we conducted our third Global topics. Through work with the Task Force on developing markets. EY US professionals generations study to help us continue Climate-related Financial Disclosures and can participate in a number of programs to to understand the shifting demographics the Embankment Project, our professionals assist a tech startup in Brazil, a business in today’s workforce, specifically about are shaping the future through our insights incubator in Kenya and much more while trust. EY US and the Peterson Institute for into current trends and our understanding developing themselves as leaders. International Economics released a study — of a broad set of stakeholders. Is Gender Diversity Profitable? Evidence from a Global Study — that reveals a correlation between gender diversity and profitability.

US Sustainability Report Summary 2017 6 SUSTAINABILITY

Sustainable development goals

The importance of the UN Sustainable Development Goals (SDGs) as a framework for addressing global challenges has grown, and this momentum is expected to continue as organizations continue to assess and report on their alignment with the targets. EY has been particularly focused on promoting diversity and gender equality, sustainable employment and economic growth, education, and environmental stability — as well as partnerships in each of these areas.

Human and labor rights Anti-corruption Environment Supporting our people and Supporting our clients Supporting environmental communities and profession sustainability

Inside EY How we do business Helping our clients become more sustainable Creating an exceptional experience for Living by our values Positively influencing change our people Upholding the highest Strengthening our diverse and professional standards Managing our own impact inclusive culture Reinforcing our commitment to quality Promoting diversity to produce Engaging with our stakeholders broad opportunities and experiences across teams and service lines Serving the public interest Developing purpose-driven leaders through our services Listening to and recognizing our people Building trust and confidence in the capital markets Being recognized as a “great place to work” Tackling corruption in all its forms Helping businesses to innovate In our supply chain 7 with purpose Driving responsibility in our supply chain Increasing supplier diversity

In our communities Driving inclusive growth Supporting the next generation Involving our people Working with others for positive change Aligning action through global coordination

7 US Sustainability Report Summary 2017 “The average age of our people is under 30. To truly engage with them, it’s vital that we define ourselves by a purpose that’s about the world around us, not just the data points in front of us.”

Steve Howe, EY Americas Managing Partner

US Sustainability Report Summary 2017 8 PRINCIPLES

“Always doing the right thing is paramount to our purpose.”

Ted Acosta, EY Americas Vice Chair — Risk Management

82% Percentage of people who feel our partners or other leaders they work with demonstrate EY’s values in their 9 everyday behavior

9 US Sustainability Report Summary 2017 How our principles inform business EY US is committed to doing our part in building a better working world. In a better working world, trust increases. Capital flows smoothly, and investors make informed decisions. Businesses grow sustainably — and employment rises. Talent in all its forms has room to grow in an environment of collaboration.

The EY US approach to business ethics and integrity is embedded in a culture of consultation, training programs and internal communications. Senior leaders regularly reinforce the importance of performing quality work and complying with professional standards and EY policies, leading by example and through various communications. Also, EY quality review programs assess the quality of professional service as a key metric in evaluating and rewarding all professionals.

Global Code of Conduct the Global Code of Conduct. We stress its of all of our services. Across our service importance when we recruit talent, and our lines, we invest in recruiting, training and EY’s Global Code of Conduct, which was new hires are required to acknowledge it as retaining the best people in their respective refreshed in June 2017, governs the ethical part of their onboarding. In our latest Global disciplines. We also invest in strong Quality and professional behavior of all of our people. People Survey, 91% of our people say they and Professional Practice functions to Specifically, it addresses standards that guide adhere to EY’s Global Code of Conduct, even advise, support and enable our people, and our actions and business conduct in the in situations where there is pressure not to to implement our quality initiatives to a following areas: follow it. consistently high standard. These functions Working with one another The Global Code of Conduct is public advise on engagements in real time and and available to our clients and other operate our global quality review program, Working with clients and others stakeholders on our website. which evaluates engagements for quality Acting with professional integrity as well as compliance with EY policies and Maintaining our objectivity and Risk management and compliance professional standards. Findings from independence the quality review program are regularly Led by Ted Acosta, our US Risk Management Respecting intellectual capital reported to the Risk Management function function teams with all parts of our and the Global Executive, EY’s most senior The Global Code of Conduct prompts our organization to help us identify and manage management body. people to closely examine situations and EY’s risk and design processes to enable For more on risk and governance, read our compliance with legal, regulatory and act with a high level of ethical integrity. It EY US Transparency Report 2017. includes a set of questions to help our people contractual obligations. Risk Management determine the appropriate course of action provides coordinated advice and assistance A safe work environment for all in given circumstances. In developing it, to the business, engagement teams and EY leadership recognized that no code can individuals on ethics, independence, conflicts EY is committed to a safe and respectful cover every eventuality — and that from of interest, policies and compliance, business workplace free of discrimination and time to time, we may require the advice and continuity, data privacy, security, and other harassment of any kind, so that all of our support of others in addressing some of key risk matters. Risk Management also people are treated fairly and equitably every the situations that arise during the normal provides processes and tools that support day. We reinforce this through enforcement course of business. In addition to established our people in evaluating, accepting and of our Global Code of Conduct, policies and internal relationships, EY has created a serving the right clients with approved clear communications, and we continuously support network for consultation and advice services, in accordance with our commitment look for opportunities to strengthen our to help each of us live up to our Global Code to objectivity and independence. processes around these matters. of Conduct commitments. An essential way in which EY manages risk — Annually, each of us, from our chairman as well as serves the public interest — is to down, affirms our commitment to uphold work continuously to improve the quality

US Sustainability Report Summary 2017 10 PEOPLE 11

11 US Sustainability Report Summary 2017 How our purpose begins with our people Our purpose — building a better working world — is what pulls together our individuals with diverse strengths, from varying professional groups and geographies, and from different walks of life, and motivates them to go further. High‑performance teaming transforms our purpose into action — not through top-down, hierarchical management but through positive participation from our most junior members up to the highest levels of leadership. Finding the right individuals is one thing. Equipping them with the tools and the motivation to make an impact on the world together, as part of a team, is another — and it’s what we drive toward each day. Because one of us is never as good as all of us.

The exceptional EY experience Digital innovation

Our promise to our people is simple: To respond to the power of digital and 88% whenever you join and however long you what some are calling the fourth industrial Percentage of respondents stay, the exceptional EY experience lasts revolution, we’re using new methodologies who agreed that “The a lifetime. It isn’t unusual for a talented to predict what people we will need, for professional to leave EY in pursuit of which businesses. And that guides the skills experiences I have at EY are another opportunity. From our perspective, we search for on campuses (and which valuable for my growth and we may be losing an employee, but we’re campuses we need to visit), as well as which development,” according building leaders for the world — and gaining kinds of experienced hires we focus on. to the latest Global People another opportunity to network with We’ve developed tools that rely on talented people at thriving companies. Survey results in the US predictive data analysis for service lines to “EY taught me how to acclimate very use, and more are in the works. We’re using quickly to different people and to different robotic process automation, which involves environments,” says Maria Urani, software and machine learning, to complete Chief Information Officer at NetJets, repetitive tasks. This frees up our people 82% who worked at EY for a decade in IT for more exciting work, and it creates new Percentage of people who management consulting. roles to continue our innovation journey answered affirmatively to and operate better in a technologically We know that when talented people are driven world. “EY provides me with learning empowered and energized, the entire opportunities that build the marketplace benefits. It’s part of how we And we always want to hear from our deliver on our strategic goal of developing people about new ways of working and skills I need to be successful” talent for the world — and how we motivate innovative client-serving approaches. In our high-performing team members to our Global People Survey, 83% agree that become agile, purpose-driven leaders. “I am encouraged to come up with new and better ways of doing things.”

US Sustainability Report Summary 2017 12 PEOPLE

80% Diversity and inclusiveness While there has been progress in the push to achieve full workplace inclusion for women, Percentage of respondents minorities and other underrepresented groups, much more can be done. Our efforts who indicated that their in diversity and inclusion further our business strategy — and they also address managers encourage and UN Sustainable Development Goal 5 (Gender equality). respect varying viewpoints, EY US invests in and recruits people with strong relationships and delivering the best perspectives and styles, a broad spectrum of perspectives because services to our clients. according to the latest we know that solving the problems of We embed core principles of inclusiveness a complex and diverse business world Global People Survey results across our entire organization and requires that kind of approach. That’s in the US throughout all of our business processes, why diversity and inclusiveness (D&I) and we equip our people with the is fundamental to our business — and skills and confidence to team and lead why our commitment cuts across not inclusively, so all team members can only race, ethnicity, gender and sexual maximize their contribution, regardless 82% orientation, religion and non-religion, of background. When this happens, we but also varying skills, experiences, Percentage of people who can deliver exceptional client service with backgrounds and workstyles. Fostering an believe EY US has created more effective cross-border teams and inclusive workplace culture where everyone an inclusive environment richer perspectives, thus yielding better also feels a strong sense of belonging is outcomes. And our internal and external where people with fundamental to driving innovation, building metrics show that we’re succeeding. diverse backgrounds and experiences can succeed Recognized as the best

In addition to being ranked as the No. 1 company overall by DiversityInc, EY US topped 81% the lists in five out of nine categories: Diversity councils Mentoring Percentage of people who Employee resource groups Executive women agree that EY US provides People with disabilities a work environment 13 where they feel free to be themselves

13 US Sustainability Report Summary 2017 Significant advances Americas Inclusiveness Advisory Council

Internally, we’ve seen a threefold growth in the representation Steve Howe and Karyn Twaronite, EY Global Diversity & of minorities at the partner and principal ranks since 2000, and Inclusiveness Officer, co-chair the Americas Inclusiveness Advisory women now comprise 40% of our client-serving professionals Council (IAC), comprising influential EY Americas leaders from in the US. across Regions, service lines and functions. The IAC meets regularly to share leading practices, explore D&I challenges and collaborate Minorities account for 41% of the starts from our intern hires, on high-impact actions that council members can take back to their 39% of our starts from entry-level hires and 51% of the starts from respective units. Our council is allied with these organizations — our experienced new hires. Today, minorities represent about and many others — promoting gender equity, minority and LGBT+ 37% of our total US population — more than double the percentage inclusion, diverse abilities and more: from a decade ago. Catalyst In the US, 46% of all hires were women, and 35% of our promotions to partner, principal, executive director and director were women. Center for Talent Innovation Of the six Regions in the US, two are led by women, and another Executive Leadership Council is led by an African-American man. A woman leads our entire Human Rights Campaign EY Americas Tax service line. In 2017, we announced that Kelly Grier would replace Steve Howe as EY US Chairman and National Gay and Lesbian Chamber of Commerce Americas Managing Partner. National Organization on Disabilities US Business Leaders Network

Creative ideas from everyone

In 2016, we launched our Neurodiversity program, seeking out individuals on the autism spectrum. We recognized that some of the characteristics often associated with people on the autism spectrum — excellent mathematical abilities and technical skills, focus on details, and pattern recognition — line up with areas of growing need at EY US. “We are looking for neurodiverse individuals not because we want to have a diversity or inclusion program or it’s a nice thing to do, but because it drives business value,” said Hiren Shukla, who leads the group. It’s been such a success that we have expanded the program and will continue to expand it. The program has been spotlighted in a PBS NewsHour segment featuring Steve Howe.

US Sustainability Report Summary 2017 14 PEOPLE

Well-being 84% Because each of our people is different — Flexibility. Flexibility is embedded in Percentage of our US people across generations, abilities, working styles, our culture and is available to everyone and family sizes and compositions — we regardless of gender and whether they who said that their manager offer a diverse range of benefits that are are married or single, with or without enabled flexibility, which frequently tweaked or even rethought children. We also have formal flexible work is one of the ways we help to accommodate our people’s changing arrangements (FWAs) for those who need needs. To that end, we offer an evolving to flex more consistently. As long as they our people maintain their Total Rewards package that invests in the work at least 20 hours a week, our people career momentum long‑term physical and emotional wellness on reduced-schedule FWAs are eligible for of our people. Its components include: full-time benefits. Currently, approximately 4,000 people at EY US are on some type Pathways to Parenthood. Professionals of FWA, 31 of whom were promoted to who have been with EY US for a year are partner, principal, executive director or 81% eligible for up to 16 weeks of fully paid time director during this past promotion season. Percentage of people who feel off. This includes primary care new fathers FWAs do not diminish service quality — and adoptive parents, when welcoming a that their manager genuinely in fact, they enhance it, by allowing us to child through birth, adoption, surrogacy, bring quality team members to the table cares about their well‑being foster care or legal guardianship. EY US on their own terms, promoting focus and was first among the Big Four to equalize helping them manage their career and life. paid parental leave for new mothers and fathers. Additionally, US employees are eligible for a lifetime maximum of $25,000 Schedules that offer balance per family to cover the cost of advanced Agnes Y. relies on her FWA as a working “2nd.MD took the time to reproductive technology (ART) procedures, mother. One day, when she was one surrogacy and/or adoption expenses. month pregnant, she was running after examine every detail of Fertility prescriptions are also covered, up the morning train to get to her office in my medical history and to $10,000, an additional lifetime coverage. Southern California when she tripped ART procedures are available for our people and fell, and her computer bag fell connected me with a top and their spouse or registered domestic into the platform gap. “Not only was it partner or surrogate. embarrassing for me, it got me thinking cardiac physician. It was a Personal/family care leave. In 2017, we that it was not just me that I needed to wonderful experience, and rolled out a new benefit that enables all take care of but my growing child, too,” 15 US-salaried employees to take up to 10 days she says. Agnes’ journey from then to I consider myself incredibly of paid time off annually for personal and now shows EY US’ approach to flexibility: fortunate that EY offers family care needs, such as attending to a she worked from home two days a week, sick child or an elderly dependent. took maternity leave for three months, this benefit.” assumed a 30-hour work week that quickly changed into a one-year leave David F., an associate director, about a of absence, then returned on an FWA benefit introduced in 2017 that gives that gave her Wednesdays off. And that our professionals direct no-cost access to didn’t derail her career: in 2017, she was top medical experts for second opinions. promoted to executive director in People David F. was diagnosed with a rare heart Advisory Services. condition and gained vital information from 2nd.MD doctors.

15 US Sustainability Report Summary 2017 Fair pay

Our leaders understand how important it is for all our people, across diverse high-performing teams and support roles, to share in the success of EY US. Pay equity is critical to our guiding principle of being fair. In August 2016, we signed on to the Obama Administration’s Equal Pay Pledge, part of which requires us to conduct an annual company-wide gender pay analysis across job roles and embed equal-pay efforts into broader initiatives. We conducted that survey in 2017 and will do so each year. And in 2017, we announced that we will not inquire about previous salaries during new hire negotiations and offers.

“This deliberate attention to equitable pay, along with our commitment to equitable sponsorship and increased flexibility, is essential to upholding EY’s values and maintaining our inclusive culture.”

Steve Howe, EY Americas Managing Partner

US Sustainability Report Summary 2017 16 SERVICE

“We don’t like EY at all — we love EY. And you have become an indispensable partner to us. And the encouragement and inspiration you have brought because of the company you work for is something that has become tangibly felt by many people in our organization.”

Executive at an automotive client 17

“As independent auditors, our role is to serve the public interest and provide trust and confidence to the capital markets by delivering high-quality audits.”

David Kane, EY Americas Vice Chair of Professional Practice

17 US Sustainability Report Summary 2017 Exceptional client service

Providing the right services to the right Independence practices As a reflection of the EY Global Code of clients is an essential foundation of EY US Conduct, our data protection program is risk management processes. The EY Global We have EY Global Independence policies grounded in a global network of our Data Client Acceptance and Continuance that all US personnel and all US assurance Protection professionals spanning across Policy, which all EY member firms must engagement teams must comply with. Risk Management and the General Counsel’s follow, outlines principles to determine These policies, in certain areas, are Office, as well as our Information Security whether to accept a new client or a new more restrictive than required by law organization and its people and policies. engagement or to continue a relationship or regulation. The EY Confidentiality Global Policy expands with an existing client. These principles are We consider and evaluate independence on the Global Code of Conduct’s requirements fundamental to maintaining quality and from several perspectives, including our and emphasizes the importance of protecting independence, managing risk and meeting financial relationships and those of our all confidential information throughout the regulatory requirements. people; employment relationships; business entire data life cycle. It sets specific rules for In addition, the EY Global Conflicts of relationships; the permissibility of non‑audit sharing confidential information and what Interest Policy defines global standards services we provide to audit clients; to do in case of loss, theft or inappropriate for categories of conflicts of interest and a applicable partner rotation requirements; disclosure of confidential information. process for identifying potential conflicts fee arrangements; audit committee The EY Global Personal Data Privacy of interest. It also includes provisions for preapproval, where applicable; and partner Policy and Binding Corporate Rules set out managing potential conflicts of interest remuneration and compensation. Failure the personal data management principles, quickly and efficiently through the use of to comply with applicable professional including those related to current, past and appropriate safeguards. Such safeguards independence requirements will factor prospective personnel, clients, suppliers range from obtaining a client’s consent into decisions relating to a person’s annual and business associates. These policies are to act for two or more clients, to member performance and may lead to other examined regularly for consistency with firms declining an engagement to avoid a disciplinary measures, including separation applicable laws and regulations concerning potential conflict. from EY US. protection of personal data. We use the EY Process for Acceptance For more on our internal policies, read our EY US Transparency Report 2017. To reinforce our policies and procedures and of Clients and Engagements (PACE), a keep pace with constantly evolving threats new intranet-based system, for efficiently Data privacy and confidentiality to data protection, we require our people coordinating client and engagement to undergo data protection and information acceptance and continuance activities in Our confidentiality commitments span a security training. This includes the EY line with global, service line and member wide range and include the confidentiality Protecting Confidential Information online firm policies. PACE takes users through the requirements of the AICPA’s Code of learning module for all new hires, which acceptance and continuance requirements, Professional Conduct, our client contracts, 98% of new hires completed in FY17. Each and it identifies the policies and references and applicable laws and regulations. The EY year, we also deploy an updated US data to professional standards needed to Global Code of Conduct sets the foundation protection awareness program to help our assess both business opportunities and for our data protection practices and people improve their understanding of data associated risks. As part of this process, we states that EY people respect and protect protection practices and security threats. carefully consider the risk characteristics confidential information obtained from, For more on our approach to data privacy and of a prospective client or engagement, or relating to, our clients or third parties, confidentiality, viewProtecting your data. whether the services are appropriate for as well as personal information about our us to provide and whether we can commit people, in accordance with local law and sufficient resources to deliver quality professional standards. service, especially in highly technical areas.

US Sustainability Report Summary 2017 18 COMMUNITIES

112,000 Total hours donated by EY US Connect Day volunteers 17,000 Number of volunteers 19 Driven to contribute Many of our people volunteer throughout the year. EY Connect Day is when we encourage all of them to do so on a single day. Whether they mentor youth, help job seekers or connect with veterans, EY professionals team with colleagues across service lines and walk away even more committed to their communities — while still having a blast.

19 US Sustainability Report Summary 2017 How we strive to build stronger communities Underserved youth often find themselves missing out on opportunities for more rewarding careers. Many women make significantly less money than their male counterparts and are overlooked for promotions or financing for new ideas. Entrepreneurs have an idea that could lead to significant job growth and useful services but are stymied when they’re busy juggling too many needs at once with too little money. Our insightful professionals are well-suited to drive positive change in the world through energy, enthusiasm and the courage to lead. That’s why we’re particularly focused on education, equity in the workplace and entrepreneurship.

Education

To avoid future skills gaps and help build diverse and inclusive workforces, we put our leadership skills and technical know-how to work for youth and further the aspirations of Active on STEM UN Sustainable Development Goal 4 (Quality education). Of current science, technology, engineering and math (STEM) College Mentoring for Access and Junior Achievement (JA). EY US partners graduates, only an estimated Persistence (MAP). Our goal is to educate currently hold more than 40 board positions 20% are women or from underserved students about the college with JA, including seats on the JA USA and minority groups. Wanting application and financial aid process and JA International boards. We are proud to to change that number, to help them envision themselves as have expanded the JA Company Program college-ready. To do so, we engage our to additional cities across the US. EY US Lee Ann K., an associate people as Mentors to offer students — called professionals volunteered 1,500 hours director in Talent, founded Scholars — personalized support, coaching in 2017. STEM Advantage, a and guidance through the college application Boys & Girls Clubs of America (BGCA). not‑for‑profit program that and decision‑making processes. We also Our involvement includes using fun, hands‑on prepares and inspires young established a scholarship fund on behalf activities from our Cyberchase program women and underserved of the graduating class of 2013, and it’s to get kids engaged in learning about math minorities of all genders to become a yearly tradition with great impact: and business. EY professionals serve on the pursue STEM careers through $1.3m: total raised for first-year boards of local Boys & Girls Clubs in 30 US College MAP scholarships since 2009 paid internships, mentorships and Canadian cities. (not counting 2017 figures) and scholarships. To date, $750k: total raised for ongoing more than 1,000 young scholarship support beyond the first year people have gone through 1,300: number of Scholars assisted the program in the US. We took notice — and awarded her group $250,000 as part of our internal Better begins with you competition. All the operational and administrative costs of the scholarships are covered by the STEM Advantage Board.

US Sustainability Report Summary 2017 20 COMMUNITIES

Entrepreneurship

Entrepreneurs are a key engine for creating sustainable growth, and EY US has placed a Making an impact and major emphasis on growing their social impact, in line with UN Sustainable Development gaining confidence Goal 8 (Decent work and economic growth). Joyce O. has worked as Entrepreneur Of The Year® program. Network for Teaching Entrepreneurship an internal and external As the first and only truly global awards (NFTE). This global nonprofit is focused consultant, at local and program of its kind, Entrepreneur Of The on bringing entrepreneurship education to national levels, behind the Year celebrates those who are building and teens from under-resourced communities. scenes and serving clients in leading successful, growing and dynamic The program helps them see the relevance the field. But to become the businesses. In 2016, the Harvard Business of their studies as they learn skills in key leader she wanted to be, she Review examined the 9,200 executives academic subject areas as well as business had yet to perform at the in the US who have won the award since and financial planning. EY US partners global level. So the Cleveland its founding and discovered that they have serve on 9 of the 11 NFTE regional advisory professional applied to become added trillions of dollars to the economy. boards across the US, and in 2017, nearly 400 EY US professionals performed nearly an advisor in the EY Vantage EY Vantage. This program connects future 2,400 hours of work in NFTE classrooms, at program. She was matched EY leaders with the market leaders of competitions and on field trips. with a private Brazilian tomorrow to accelerate growth and create marketing agency that opens jobs, working closely with Endeavor Global doors for national brands and to select the most promising entrepreneurs advertisers to the country’s who could benefit from our help to burgeoning youth market. overcome their biggest obstacles. Over the 2,400 course of six weeks, our top-performing After two days of training and Total hours of work committed by managers and senior managers work cultural preparation, Joyce alongside promising entrepreneurs in five EY employees in NFTE classrooms, traveled to her new home emerging markets to help these businesses at competitions and on field trips for the next two months: address their biggest obstacles to growth. São Paulo. There, she worked In 2017, 20 US participants volunteered with the Director of Human 4,800 hours (the equivalent of more Resources to enhance the than two years of full-time work) through 400 performance management this program. Number of EY US employees system and career 21 participating in NFTE development process, driving the company’s ability to recruit and retain talent. A year after her time in Brazil, Joyce seized a new opportunity within EY: a global leadership role within a Center of Excellence for our Advisory service line. She said, “There was just as much benefit to me as there was for the agency.”

21 US Sustainability Report Summary 2017 Equality

Advances in equity in the workplace correlate with sustained economic growth and community investment, aligning with UN Sustainable Development Goals 5 (Gender equality) and 8 (Decent work and economic growth).

EY US seeks to extend our impact as Ethnic diversity. EY US has a strong brand on by Out Leadership, the first global champions of diversity through programs presence each year at Ascend and annual LGBT+ leadership organization for the and alliances that harness the untapped events put on by the National Association financial industry. Beth Brooke-Marciniak, leadership potential of all people, of Black Accountants, the Association EY Global Vice Chair — Public Policy, is recognizing our differences and promoting of Latino Professionals for America a member of its Global Advisory Board. our strengths. We also sponsor research (ALPFA), the National Black MBA Chris Crespo, EY Americas Inclusiveness that examines the forces at work that hold Association and the National Society Director, and Theresa Harrison, Director some people back and the overall benefits of Hispanic MBAs, where we regularly of Supplier Diversity, provide leadership of inclusiveness. run workshops on networking, mentoring on the National LGBT Chamber of and leadership development. EY US also Commerce’s Board of Directors and Gender equity. EY US seeks to advance sponsors the Corporate Board Initiative Procurement Council. women in business through our by the Executive Leadership Council, which Women. Fast forward platform, an Diverse abilities. Megan Hobson, EY creates opportunities for Black executives accelerator that employs our collective Americas Administration Leader and the in the market to serve as directors on knowledge, experiences and convening Executive Sponsor for the AccessAbilities corporate boards. And through Elements power to push ourselves further and to help professional network, sits on US Business of Success, offices across the US help accelerate global gender parity. Through Leadership Network’s Board of Directors, Black college students prepare for career Women. Fast forward, we played a vital role and many others within EY US sit on fairs, leadership conferences, interviews as the #PressForProgress main campaign planning committees to help shape its and other opportunities. sponsor of International Women’s Day. In annual conference. In 2017, Steve Howe, addition, the national EY Entrepreneurial LGBT+. We have a long-standing EY US Chairman and Americas Managing Winning WomenTM North America relationship with Out & Equal and are an Partner, received the group’s John D. competition and executive education annual Advocate sponsor of the Out & Kemp Leadership Award. We were also the program, now in its 10th year, identifies Equal Workplace Summit. Since 2006, we exclusive provider of professional services a select group of high-potential women have been among the top 10 companies to the organizing committee for the entrepreneurs whose businesses show real ranked by number of attendees. We have Paralympics, and through our support, we potential to scale — and then helps them sponsored workshops and hosted the first helped shine a light on the talents and skills do it. EY Transgender Diversity breakfast. EY of people with diverse abilities. US has also sponsored conferences put

US Sustainability Report Summary 2017 22 ENVIRONMENT

23 Stewards of the environment Since 2009, we’ve teamed with the Earthwatch Institute, which engages people in worldwide scientific field research related to sustainable development. Our people use their professional skills to assist entrepreneurs (for example, to improve marketing and sales strategies) and conduct environmental research (such as collecting data on water quality). When Jimson M., a senior manager in New York, was a senior, he was an Earthwatch Ambassador in Brazil, where he advised research scientists studying bird migration patterns and global warming in rainforests. In the evening, his team advised a local entrepreneur about marketing and capital‑raising for his sugar plantation business. “It was a tremendous learning opportunity that allowed me to team with individuals in five different countries that spoke half a dozen languages,” Jimson says. Read this press release to learn about how we worked with entrepreneurs in Mexico and Peru.

23 US Sustainability Report Summary 2017 A focus on the environment Our commitment to environmental sustainability started long ago as a grassroots movement by passionate environmentalists in our offices. Now, environmental sustainability, led by EY Americas Director of Environmental Sustainability Leisha John, has become central to the EY US business strategy and is integrated into what we do across all service lines. From this, we gain a strategic advantage: our US firm can credibly deliver climate change and sustainability services, attract and retain talent, and promote operational excellence by reducing our environmental impact and cutting operational costs.

Climate change

Beyond our focus on our own greenhouse gas emission targets, EY US services help companies track and address their own impacts on global warming.

In the short term, we’re focused on In FY16, we published an Americas-wide achieving our target of cutting greenhouse environmental statement that formalizes gas (GHG) emissions by 12% by 2020, our commitment to our stakeholders to with an FY15 baseline. This strategy operate in a manner that reduces our was developed based on a combination environmental impact. To do so, we’re –12% of benchmarking, research on market embedding environmental responsibility in Greenhouse gas emissions practices and industry insights, considering: our culture through a number of activities, reduction target for 2020 including: Science: studies from the Intergovernmental Panel on Working with our stakeholders to Climate Change on limiting the promote improved environmental increase in global mean temperature performance 849m to 2 degrees Celsius Executing a dedicated communications Number of miles of air Policy: policy commitments, including strategy to generate awareness the US commitment in the UN’s 21st and educate employees about travel by EY US employees Conference of the Parties environmental sustainability in FY17 Other GHG targets in place in the Collaborating with leading professional services industry nongovernmental organizations to promote sustainable business practices The vast majority of our carbon output 849 comes from two sources: office energy Complying with applicable laws, consumption from our real estate portfolio regulations and standards relating to Collective time in years and business travel, particularly air travel. our environmental impacts and aiming spent in the air during all We have formalized and implemented to exceed their minimum requirements that travel initiatives to achieve our 2020 GHG target, aiming to reduce carbon output from office energy consumption by about 3% and business air travel by 9%. We collect year-over-year performance data and compare it to our FY15 baseline to determine progress.

US Sustainability Report Summary 2017 24 LEARN MORE

Team players for change EY US is at the forefront of assisting businesses, governments and communities with broad sustainability topics to improve how we work and live. As a reflection of our commitment, we provide thought leadership on important topics that promote more inclusive capitalism and sustainable growth. Here are some of those reports.

Click on images for full articles.

Why we can’t let uncertainty Can sustainable energy drive Why we need to future proof our cities 25 disrupt growth sustainable growth? for sustainability Is your city as smart as its residents? How to inspire your people to innovate Digital agriculture: enough to feed a rapidly growing world?

25 US Sustainability Report Summary 2017 How collaboration can help create a How do you make sure you’re Can we turn pollution into products? healthier world measuring the things that matter?

How a city transformed from What if business were society’s Why the energy sector must bankruptcy to renewal greatest problem solver? embrace blockchain now

Climate Change and Sustainability Services How to address a complex and increasingly interrelated landscape of environmental, social and economic issues poses a unique challenge. The EY US Climate Change and Sustainability Services team helps clients to create more sustainable, profitable enterprises, and in doing so, further activates our purpose to build a better working world. Our multidisciplinary team of professionals combines our core experience in assurance, tax, transactions and advisory with environment, health, safety and sustainability skills and deep sector knowledge.

US Sustainability Report Summary 2017 26 EY | Assurance | Tax | Transactions | Advisory

About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

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Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.

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